Find what is operating cash flow each year

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Problem1 : A company sells Tidbits to consumers at a price of $99 per unit. The costs to produce Tidbits is $32 per unit. The company will sell 15,000 Tidbits to consumers each year. The fixed costs incurred each year will be $250,000. There is an initial investment to produce the goods of $3,000,000 which will be depreciated straight line over 13 year life of the investment to a salvage value of $0. The opportunity cost of capital is 5% and the tax rate is 36%. What is operating cash flow each year?

Reference no: EM132708615

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